A plan to reduce the federal debt by decreasing prescription drug prices may lead to 260,000 U.S. job losses, the pharmaceutical industry said.

President Barack Obama's administration and congressional negotiators are attempting to reach an agreement to raise the $14.3 trillion debt ceiling before the Aug. 2 deadline, an accord that would involve spending reductions in coming years.

The administration and Congressional Budget Office have suggested cost-cutting options such as making drugmakers pay government rebates for treatments bought by low-income beneficiaries of Medicare.

The policies may cut as much as $20 billion from the industry's annual revenue, John Castellani, chief executive officer of the Pharmaceutical Research and Manufacturers of America, said in a conference call Monday. A report the Washington-based lobbying group commissioned found lost revenue would reduce U.S. economic activity by $59 billion.

"Startling potential job losses would result from undermining the business foundations of biopharmaceutical companies," Castellani said.

Read more: http://www.star-telegram.com/2011/07/11/3214611/drug-discounts-for-debt-cuts-may.html#tvg#ixzz1S07YpGD5

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